Bethlehem Council begins tackling 2013 budget

Discussion centers on plan to see contribution from colleges, hospital.

November 21, 2012|By Charles Malinchak, Special to The Morning Call

Bethlehem City Council started to tackle the 2013 budget on Monday, with discussion focusing on Mayor John Callahan's plan to seek $1 million in contributions from large nonprofits to help close a $4.8 million gap.

The proposed contribution is one of several new revenue streams contained in the $72.1 million spending plan. Others include raising property taxes 8.5 percent, going with a single trash hauler for all residents and enacting a 5 percent tax on tickets at entertainment venues.

Council seemed to favor Callahan's idea to persuade nonprofits such as Lehigh University, Moravian College and Lehigh Valley Health Network to contribute $1 million, an amount that Callahan said "makes sense." All are tax-exempt enterprises comprising 19 percent of city land.

Callahan said the city is late in asking for such a contribution since many other college towns have been collecting payment for years.

"MIT [Massachusetts Institute of Technology in Cambridge] has had an agreement with the city since 1928 and it's not just Ivy League. Wilkes and Franklin and Marshall have agreements going on for quite some time.''

Callahan has been in discussions about it with the institutions' leaders. "Some of them have been positive, some not so positive, but that doesn't mean I won't stop. I will continue to make my case,'' he said.

While the mayor suggested council also be involved with talks, Councilwoman Karen Dolan floated a move to pass a resolution promoting a contribution, but that changed into council possibly writing a letter supporting Callahan's effort.

"We shouldn't just wait for the mayor to get the OK," she said.

Council President Eric Evans said without the contribution it would mean finding $1 million more in budget cuts.

Council gave a brief talk to Callahan's proposal to use a single garbage hauler in the city instead of having property owners chose their own, saying it would be discussed in depth at a future session.

But Evans said, "I'm not comfortable with it.''

Callahan said a single-hauler contract could generate about $500,000 toward funding the city's recycling program.

Callahan said it would also save residents about $110 per year and it is a system used in most cities in the state, including about 84 percent of the communities in the Lehigh Valley, he said.

The proposed 5 percent tax on tickets at entertainment venues was also pushed back to future talks.

Council will continue budget discussions Nov. 27 and Dec. 4 with final meetings Dec. 17 and 20.